The Michigan Legislature's Appropriations Subcommittee on Medicaid and Behavioral Health convened on May 20, 2025, to discuss critical funding needs for Recovery Community Organizations (RCOs) across the state. These nonprofit centers, led by individuals in recovery, play a vital role in supporting those transitioning out of treatment by providing essential services such as transportation, peer coaching, and mutual support groups.

During the meeting, representatives highlighted the significant impact RCOs have had, noting that last year alone, they facilitated over 5,000 support calls and transported more than 3,000 individuals without billing Medicaid. However, many RCOs face financial instability due to reliance on short-term funding and the lack of reimbursement under traditional service models.

To address these challenges, RCO representatives requested $5.25 million from the state budget, emphasizing the need for sustainable funding to continue their operations. This funding would include $3.8 million specifically allocated to expand services through opioid settlement dollars, with each RCO receiving $250,000. Additionally, they sought $250,000 for an association of RCOs to provide technical assistance and ensure accountability.

The representatives stressed that opioid settlement funds were intended to combat the opioid crisis and not to supplement general funds. They shared personal stories, illustrating the transformative impact of RCOs on individuals and families, and urged the committee to support their funding requests to maintain these critical services.

The meeting underscored the urgent need for dedicated investment in recovery support systems as demand continues to rise, with a call for action to ensure that RCOs can continue to provide hope and stability to those in recovery.